President Donald Trump’s son Eric’s Bitcoin mining operation reportedly wiped out nearly $600 million in market value after its stock price plummeted more than 95% from its all-time high.
While the company continues to add Bitcoin to its treasury, investors are moving away from crypto mining stocks and putting more money into AI companies.
US Bitcoin stocks plummet by more than 95%
American Bitcoin, a mining company backed by the Trump family, became one of the biggest losers in the mining industry.
About 6% of the company’s stock held by Eric Trump has lost more than $600 million in market value over the past 10 months, according to a report, as U.S. Bitcoin stocks have plummeted more than 95% from their all-time highs.
This decline prompted the company to implement a 15-to-1 reverse stock split in order to maintain its listing on the Nasdaq. Despite this move, American Bitcoin Corporation (ABTC) stock has recently fallen about 77% this year.
Meanwhile, the company reported a net loss of $81.8 million in the first quarter, primarily due to a decline in the value of its Bitcoin holdings.
Bitcoin finance continues to grow
Despite $600 million in losses and a stock market crash, Bitcoin America continues to build up its Bitcoin reserves.
The company currently holds about 8,000 BTC (worth about $504 million), making it the 16th largest corporate Bitcoin holder.
However, this suggests that the company remains committed to its long-term Bitcoin strategy, even as the mining business faces one of its toughest periods in recent years.
AI boom leaves Bitcoin miners behind
The decline is not just a problem with Bitcoin prices. Many mining companies are facing declining profits as the cost of mining has increased.
Several publicly traded miners, including Riot Platforms, Cipher Mining, MARA Holdings, and TeraWulf, are moving into AI datacenters by leasing their computing infrastructure to AI companies. Their stock prices have increased by more than 60% on average this year.
The reported $600 million loss represents a decline in the market value of Eric Trump’s stock, not money realized from stock sales.
Meanwhile, President Donald Trump recently revealed more than $1.4 billion in crypto-related revenue last year.
